It’s safe to say most of us know the importance of tracking our spending. How many of us still don’t bother to do it? It can seem overwhelming and tedious to think about tracking every purchase. Is it really worth it? Well, have you ever found yourself three days away from payday wondering where the heck your money went?
We’ve all been there at one time or another.
Here’s a few reasons you may decide it’s time to start tracking those expense!
1.) Know Where Your Money is Going
2.) Helps You Prioritize
It’s your money and you should get to spend it on whatever is needed or valued most in your life. But how will you know if you’re doing that if you don’t track your spending? Maybe you’re spending an exorbitant amount on groceries when you really want to be saving for travel. You’d only know that if you are actually aware of how much you’re spending on groceries. That ‘extra’ money you’re spending in other areas could be going toward your dreams.
Most of us don’t have an infinite amount of money to spend on whatever we want, there is only so much money to go around. Laying out all of your expenses forces you to prioritize where the money is going to go. If you decide you want to accelerate your savings or pay down your debt, having a clear picture of your finances will help you determine how you can make either a priority.
3.) Take Control
“Only YOU can control YOUR future.” (Dr. Seuss) Knowing where your money is going is empowering. You don’t have to be a math genius or a penny pincher to make it work for you. Once you put together your expenses and know where your money is going, you can move it around and adapt your spending to your situation. Tracking your spending ultimately allows YOU to take control of YOUR financial situation.
What are my Budget Busters?
Track your expenses for a month and then take a look at what it shows. What are your budge busters or things that are in the way of your financial goals? These might include: Unneeded Services
on your cell phone bill; Spending Leaks
such as fast food, coffee or ATM fees; Fees/Late Charges
that can be avoided; Impulse Buys